If the consumption function shifts downward, which of the following is the most likely cause?
a. Consumers become more optimistic.
b. The price level increased.
c. Consumers' incomes increase.
d. Real interest rates decrease.
b
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A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside) the production possibilities curve
What will be an ideal response?
Refer to Figure 8.1. At the profit-maximizing level of output,
A) AVC is minimized. B) ATC is minimized. C) MC is minimized. D) total cost is minimized. E) no costs are minimized.
If the government wants a natural monopoly to earn a "fair return" or zero economic profit, it will set
a. price equal to marginal cost. b. price equal to average total cost. c. price equal to average revenue. d. marginal cost equal to marginal revenue. e. marginal cost equal to average total cost.
A firm's profit equals:
A. (P ? ATC) ÷ Q [(price minus average total cost) divided by the quantity sold]. B. (P ? ATC) × Q [(price minus average total cost) times the quantity sold]. C. P ? MC [price minus marginal cost]. D. P × Q [price times the quantity sold].